Renault’s Independent Directors Back Ghosn’s Showdown With France

The 10 independent members of Renault SA’s 20-member board issued a blunt statement on Thursday objecting to the French government’s efforts to bolster its influence over the company’s business decisions.

Renault’s board has been trying to rebalance control of the company’s alliance with Nissan Motor Co. The effort was thwarted in April when the French government hiked its stake in Renault to 19.7% from 15%.

The maneuver enabled the state to block the board’s “one-share, one-vote” policy, which would have cleared a path to give Nissan voting rights in the alliance. Renault currently holds a 43% stake in Nissan and has exclusive control over the 16-year-old partnership. Nissan’s 15% equity in Renault does not include voting rights.

The government could boost its voting rights to as much as 28% next April under a new French law that doubles such rights for long-standing investors.

Renault’s board is holding an emergency meeting today, reportedly to push for a plan to rebalance the alliance’s cross ownership such that each company would own 25%-35% in the other. Doing so would give Nissan voting rights, a move the government strongly opposes.